Back in July several federal agencies including the Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corp. jointly filed a proposed revision of Form 5500. Since then, the American Institute of CPAs (AICPA) has expressed concerns that some, not all, of the proposed changes could result in inconsistencies and confusion.
According to the DOL, the Form 5500 Series was developed as a way for employers to document employee benefit plan reports in compliance with requirements set forth by the Employee Retirement Income Security Act (ERISA).
The revisions suggested by the federal agencies were intended to:
While the AICPA ultimately supports the move toward revision, the association sent comment letters to the DOL on November 22 outlining its chief concerns. For instance, the proposal:
In terms of reaching an acceptable solution, the AICPA is encouraging federal agencies to hold public hearings to give both the agencies and the stakeholders the space to compromise conflicting viewpoints before the proposal is officially finalized.